Diamond Bar City Council
May 19, 2026

Fund # Fund Title
Estimated FB
Reserves @
07/01/26
Operating
Revenues Transfers-In Total Resources Operating Expense Transfers-Out One-Time
Appropriations
Capital
Improvement
Program Total Uses
Addition/(Use) of Fund
Balance
Est. Reserves @
06/30/27 Fund Balance Notes

CITY OF DIAMOND BAR
Resources & Uses
Fiscal Year 2026/27 Proposed Budget

PROPOSED RESOURCES PROPOSED USES FISCAL IMPACTS
254 Beverage Recycling Grant 48,070 15,332 - 15,332 13,532 - - - 13,532 1,800 49,870 255 Local Streets & Roads Grant Fund - - - - - - - - - - - 256 Hazard Mitigation Grant Fund 5,815 165,000 56,000 221,000 - - 221,000 - 221,000 - 5,815 Update Haz. Mit. Plan 260 Park Fees (Quimby) Fd 140,582 500 - 500 - - - - - 500 141,082 261 Measure A Neigh. Parks Act - - - - - - - - - - -
262 Park & Facility Development Fd 2,155,251 7,300 - 7,300 - - - 250,000 250,000 (242,700) 1,912,551 263 Prop A - Safe Neigh. Pks Fd - - - - - - - - - - -
270 PEG Fees Fund 417,000 68,800 - 68,800 50,000 - - - 50,000 18,800 435,800 280 Citizens Option for Public Sfty Fd 499,376 188,200 - 188,200 10,000 152,500 - - 162,500 25,700 525,076 301 Capital Improvement Project Fd - - - - - - - - - - - 401 Debt Service Fund - - 726,000 726,000 726,000 - - - 726,000 - - 501 Self Insurance Fund 315,479 - 820,807 820,807 820,807 - - - 820,807 - 315,479 502 Vehicle Maint & Replacement Fd 766,393 6,000 171,500 177,500 136,500 - - - 136,500 41,000 807,393 503 Comp. Equipment Maint & Repl Fd 459,543 8,000 - 8,000 208,000 - - - 208,000 (200,000) 259,543 504 Building Facility & Maint Fund 2,513,570 10,800 100,000 110,800 - - - - - 110,800 2,624,370 601 OPEB Trust Fund 1,060,547 26,600 88,000 114,600 - - - - - 114,600 1,175,147 -
Grand Totals $ 57,472,552 $ 45,354,851 $ 4,057,611 $ 49,412,462 $ 39,891,683 $ 4,057,611 $ 627,000 $ 5,365,734 $ 49,942,028 $ (529,566) $ 56,942,986

Agenda Item #: 7.1
Meeting Date: May 19, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: City Council Minutes of the May 5, 2026 Regular Meeting.

STRATEGIC GOAL: Open, Engaged and Responsive Government RECOMMENDATION:

Approve the May 5, 2026 Regular City Council Meeting Minutes.

FINANCIAL IMPACT:

None.

BACKGROUND:

Government Code Section 36814 mandates the City Clerk to keep an accurate record of the City Council's proceedings.

ANALYSIS:

Minutes have been prepared and are being presented for approval.

PREPARED BY:

Kristina Santana, City Clerk, City Clerk's Office
ATTACHMENTS:

1. May 5, 2026 City Council Regular Meeting Minutes

CITY OF DIAMOND BAR

MINUTES OF THE CITY COUNCIL CLOSED SESSION,

STUDY SESSION, AND REGULAR MEETING
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT/CC-8/MAIN AUDITORIUM 21865 COPLEY DRIVE, DIAMOND BAR, CA 91765
MAY 5, 2026

1. CLOSED SESSION: Mayor Tye opened the Closed Session at 5:00 p.m. All Council Members were present.

Conference with Legal Counsel - Existing Litigation
Pursuant to Government Code § 54956.9(d)(1) Name of case: City of Diamond Bar v. County of Los Angeles, LACSC Case No. 25STCV15208 There were no public comments provided.

No public comments were made.

No reportable action was taken.

Mayor Tye adjourned the Closed Session at 5:55 p.m.

2. STUDY SESSION: Mayor Tye opened the Study Session at 6:03 p.m. All Council Members were present.

2.1 Draft FY 2026/27 Capital Improvement Program (CIP) Budget & Draft Five-Year CIP Plan.

Mayor Tye adjourned the Study Session at 6:25 p.m.

3. CALL TO ORDER: Mayor Tye called the Regular City Council meeting to order at 6:40 p.m. in the South Coast Air Quality Management District Main Auditorium, 21865 Copley Drive, Diamond Bar, CA 91765.

PLEDGE OF ALLEGIANCE: Mayor Tye led the Pledge of Allegiance.

INVOCATION: Associate Pastor Ab Kastl, Landmark Church.

ROLL CALL: Council Members Andrew Chou, Stan Liu, Chia Yu Teng, Mayor Pro Tem Ruth M. Low, Mayor Steve Tye

Absent: None.

Staff present in person: Dan Fox, City Manager; Omar Sandoval, City Attorney; Ryan McLean, Assistant City Manager; Anthony Santos, Assistant to the City Manager; Amy Haug, Human Resources/Risk Management Director; Jason Jacobsen, Finance Director; Ryan Wright, Parks & Recreation Director; David Liu, Public Works Director/City Engineer; Hal Ghafari, Public Works Manager/Assistant City Engineer; Cecilia Arellano, Community Relations Manager; Joan Cruz, Administrative Coordinator; Kristina Santana, City Clerk.

MAY 5, 2026 PAGE 2 CITY COUNCIL
Staff present telephonically: Greg Gubman, Community Development Director.

Others present: Jason Sotelo, Deputy, Diamond Bar/Walnut Sheriff’s Station; Stephen Tousey, Captain, Diamond Bar/Walnut Sheriff’s Station; William Gamble, Assistant Fire Chief, Los Angeles County Fire Department.

APPROVAL OF AGENDA: CA/Sandoval announced that the City Council met in Closed Session and there was no reportable action taken. CM/Fox confirmed there were no changes made to the agenda. Mayor Tye approved the agenda as presented.

4. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS:

4.1 Certificate of Recognition to Edison Scholar James Wang.

The City Council, along with Edison Representative Tiffany Tran presented the Certificate to James Wang.

5. CITY MANAGER REPORTS AND RECOMMENDATIONS:

5.1 Presentation of 2025 Public Safety Report.

ACM/McLean gave the presentation and along with Captain Tousey, responded to Council Member questions.

6. PUBLIC COMMENTS:

The following provided public comments:

Cynthia Yu, Diamond Bar Library Manager
William Gamble, Assistant Fire Chief, Los Angeles County Fire Department CC/Santana reported that no emails and were submitted and no guests on the teleconference line requested to speak under Public Comments.

7. SCHEDULE OF FUTURE EVENTS: CM/Fox presented the Schedule of Future Events.

8. CONSENT CALENDAR: MPT/Low moved, C/Chou seconded, to approve the Consent Calendar. Motion carried 5-0 by the following Roll Call vote:

AYES: COUNCIL MEMBERS: Chou, Liu, Teng, MPT/Low, M/Tye
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None

8.1 Approved April 14, 2026 Special Study Session Minutes and April 21, 2026 Regular Council Meeting Minutes.

8.2 Ratified Check Register Dated April 8, 2026 through April 21, 2026 Totaling

MAY 5, 2026 PAGE 3 CITY COUNCIL
$1,712,501.97.

8.3 Adopted March 2026 Treasurer’s Statement.

8.4 Adopted the Public Service Recognition Week Proclamation.

8.5 Adopted the Asian American and Pacific Islander Heritage Month Proclamation.

8.6 Approved Ordinance No. 05 (2026) Approving the Amendments to the Diamond Bar City Code Prohibiting Camping on Public Places and Interfering with Public Access, entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR REPEALING DIAMOND BAR CITY CODE SECTION 10.16.115 AND ADDING CHAPTER 8.28 TO TITLE 8 OF THE DIAMOND BAR CITY

CODE TO PROHIBIT CAMPING ON PUBLIC PLACES AND
INTERFERING WITH PUBLIC ACCESS.

8.7 Approved Appropriation for Special Legal Counsel Services (Hansen Bridgett LLP).

8.8 Approved Appropriation for Special Legal Counsel Services (Atkinson, Adelson, Loya, Ruud and Romo).

9. PUBLIC HEARINGS: None.

10. COUNCIL CONSIDERATION: None.

11. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS:

The following Council Members provided a report on meetings attended at the expense of the local agency per Government Code 53232.3(d).

Council Member Chou reported attending the Tres Hermanos Conservation Authority Public Hike on April 12, 2026 and the Cal Cities Leaders Summit in Sacramento on April 23, 2026.

Council Member Teng reported attending the Sheriff’s Open House and the City’s Earth Day event on the same day.

Mayor Pro Tem Low reported attending the Sanitation District meeting and the Niagara Economic Summit webinar.

MAY 5, 2026 PAGE 4 CITY COUNCIL

12. ADJOURNMENT: With no further business to conduct, M/Tye adjourned the Regular City Council Meeting at 7:26 p.m.

Respectfully Submitted,
__________________________
Kristina Santana, City Clerk
The foregoing minutes are hereby approved this 19th day of May, 2026. __________________________
Steve Tye, Mayor

Agenda Item #: 7.2
Meeting Date: May 19, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Ratification of Check Register Dated April 22, 2026 through May 5, 2026 totaling $1,026,586.40.

STRATEGIC GOAL: Open, Engaged and Responsive Government RECOMMENDATION:

Ratify the Check Register.

FINANCIAL IMPACT:

Expenditure of $1,026,586.40.

BACKGROUND:

The City has established the policy of issuing accounts payable checks on a bi-weekly basis with City Council ratification at the next scheduled City Council Meeting. The attached check register containing checks dated April 22, 2026 through May 5, 2026 totaling $1,026,586.40 is being presented for ratification.

ANALYSIS:

All payments have been made in compliance with the City's purchasing policies and procedures. The attached Affidavit affirms that the check register has been audited and deemed accurate.

PREPARED BY:

Luisa Allen, Senior Accounting Technician, Finance
ATTACHMENTS:

1. Check Register Affidavit 5-19-2026

2. Check Register 5-19-2026

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18788 4/24/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 1450 BRIDGEGATE/VARIOUS - TC-1
100655 52210 $544.94
CHECK TOTAL $544.94
18789 4/24/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 1450 BRIDGEGATE/VARIOUS - TC-1
100655 52210 $582.69
CHECK TOTAL $582.69
18790 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - BREA CYN/FALLOWFIELD/ETC - TC-1
100655 52210 $235.65
CHECK TOTAL $235.65
18791 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 22805 GLDN SPRGS/VARIOUS - TC-1
100655 52210 $3,568.70
CHECK TOTAL $3,568.70
18792 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 21010 WASHINGTON AVE - TC-1
100655 52210 $116.60
CHECK TOTAL $116.60
18793 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 2201 DBB PED - TC1100655 52210 $32.76 CHECK TOTAL $32.76
18794 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 1798 DBB/22566 GLDN SPRGS - TC-1
100655 52210 $218.60
CHECK TOTAL $218.60
18795 4/27/2026 SOUTHERN CALIFORNIA EDISON PARKS 3334 1/2 BREA CYN RD (032526- 042326)
100630 52210 $46.18
CHECK TOTAL $46.18
18796 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
201 21118 $4.75
4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
238 21118 $6.54
4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
239 21118 $6.54
4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
241 21118 $6.54
4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
250 21118 $30.92

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
207 21118 $45.28
4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
206 21118 $117.99
4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE
04/24/2026
100 21118 $1,952.47
CHECK TOTAL $2,171.03
18797 4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
239 21109 $133.74
4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
241 21109 $133.74
4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
201 21109 $151.15
4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
238 21109 $258.76
4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
250 21109 $467.86
4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
206 21109 $488.56
4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
207 21109 $685.45
4/24/2026 VANTAGEPOINT TRNSFR AGNTS303248DEFERRED COMP

CONTRIBUTIONS/LOAN PYMTS
04/24/2026
100 21109 $13,951.72
CHECK TOTAL $16,270.98
18798 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26
203 21110 $46.51
4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
239 21110 $166.20
4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
241 21110 $166.20
4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
238 21110 $246.57

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
201 21110 $660.89
4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
207 21110 $1,469.39
4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
206 21110 $1,634.93
4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
250 21110 $2,235.25
4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26
& 4/1-4/30/26
100 21110 $46,686.55
CHECK TOTAL $53,312.49
18799 5/5/2026 AARP AARP APRIL 26 100520 55310 $135.00
CHECK TOTAL $135.00
18800 5/5/2026 AIMTD LLC TRAFFIC COUNTS - PECAN GROVE 251650 54410 $1,200.00 CHECK TOTAL $1,200.00
18801 5/5/2026 ALL CITY MANAGEMENT

SERVICES INC
CROSSING GUARD SERVICES - 3/29/26 -
4/11 26
100310 55412 $6,245.19
CHECK TOTAL $6,245.19
18802 5/5/2026 ATKINSON, ANDELSON, LOYA,

RUUD & ROMO
PROFESSIONAL SERVICES - LEGAL 100220 54900 $6,708.98
CHECK TOTAL $6,708.98
18803 5/5/2026 BARR & CLARK INC PLHA HIP 323 WANG-23515 GRAND RIM CT.
224440 55580 $697.00
5/5/2026 BARR & CLARK INC HIP PLHA WANG - 23515 GRAND RIM CT.
224440 55580 $550.00
CHECK TOTAL $1,247.00
18804 5/5/2026 LINGO TELECOM LLC CITYWIDE ANALOG PHONE SYSTEM - APR 2026
100230 52200 $5,079.41
CHECK TOTAL $5,079.41
18805 5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 318-TSE-24410 STAR CT. 225440 55570 $65.00 5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 318 - TSE-24410 STAR CT. 225440 55570 $34.00 5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 319-LI/YUAN-3318 BENT TWIG LANE
225440 55570 $65.00
5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 319-LI/YUAN-3318 BENT TWIG LANE
225440 55570 $38.00

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $202.00
18806 5/5/2026 COCO SUTZE CHENG CONTRACT CLASS - ZUMBA 100520 55320 $102.00 CHECK TOTAL $102.00
18807 5/5/2026 CORODATA MEDIA STORAGE
INC

DAILY TAPE ROTATION & STORAGE -
MAR 2026
100230 54030 $850.99
CHECK TOTAL $850.99
18808 5/5/2026 CREATE & LEARN INC CONTRACT CLASS INSTRUCTOR

PAYMENT
100520 55320 $561.60
CHECK TOTAL $561.60
18809 5/5/2026 CT & T CONCRETE PAVING INC ROAD MAINTENANCE SERVICES (032726)
100655 55512 $135,292.77
5/5/2026 CT & T CONCRETE PAVING INC ROAD MAINTENANCE SERVICES (TREEWELLCOVERREMOVE)
100655 55512 $18,130.00
CHECK TOTAL $153,422.77
18810 5/5/2026 DEPARTMENT OF JUSTICE LIVESCAN FEES 100220 52510 $288.00 CHECK TOTAL $288.00
18811 5/5/2026 DISCOVERY SCIENCE CENTER OF
ORANGE
ENVIRONMENTAL EDUCATION 250170 54900 $4,262.00
CHECK TOTAL $4,262.00
18812 5/5/2026 EXTERIOR PRODUCTS CORP MAINTENANCE & OPERATION SRVS (PONY041626)
262630 56104 $10,592.74
5/5/2026 EXTERIOR PRODUCTS CORP MAINTENANCE & OPERATION

SUPPLIES/SERVICES
100630 52320 $4,500.04
CHECK TOTAL $15,092.78
18813 5/5/2026 FEHR & PEERS ON-CALL TRAFFIC/ENGR- VARIOUS PROJ - NOV 2025
100615 54410 $472.50
CHECK TOTAL $472.50
18814 5/5/2026 FOSTER & FOSTER CONSULTING

ACTUARIES, INC
PROF. SVCS - OPEB ACTUARIAL STUDY
FY 2026
100210 54010 $945.00
CHECK TOTAL $945.00
18815 5/5/2026 FRONTIER COMMUNICATIONS
CORP

SUMMARY BILL - INTERNET SERVICE - APR
2026
100230 54030 $800.00
5/5/2026 FRONTIER COMMUNICATIONS
CORP

SUMMARY BILL - INTERNET SERVICES -
APR 2026
100230 54030 $505.78
CHECK TOTAL $1,305.78

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18816 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 201610 56101 $21,698.10 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 301610 56170 $86,792.40 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 301610 56180 $86,792.40 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 301610 56190 $86,792.40 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 206610 56101 $151,886.70 CHECK TOTAL $433,962.00
18817 5/5/2026 GO2ZERO STRATEGIES LLC COMPOST EQUIPMENT 250170 51400 $1,810.00 CHECK TOTAL $1,810.00
18818 5/5/2026 GOVCONNECTION INC CI012126SCO NETWORK SWITCH (1) 503230 56130 $1,754.90 5/5/2026 GOVCONNECTION INC ANNUAL RENEWAL - VM WARE - FY 25- 26 100230 52314 $4,086.00
5/5/2026 GOVCONNECTION INC HP CAREPACK - ROZ, NABOO &

TATOOINE
100230 52314 $23,885.00
CHECK TOTAL $29,725.90
18819 5/5/2026 HANSON BRIDGETT LLP LEGAL SERVICES - SEWER DISTRICT 100120 54022 $16,953.60 CHECK TOTAL $16,953.60
18820 5/5/2026 HDL COREN & CONE CONTRACT SVCS - PROPERTY TAX APR - JUNE 2026
100210 54010 $4,117.50
CHECK TOTAL $4,117.50
18821 5/5/2026 HEATHER JEN CHANG CONTRACT CLASS - YOUTH ART 100520 55320 $600.00 CHECK TOTAL $600.00
18822 5/5/2026 HELIX ENVIRONMENTAL

PLANNING INC
CANYON LOOP TRAIL RESTORATIONMARCH 2026301630 56104 $3,680.72 CHECK TOTAL $3,680.72
18823 5/5/2026 INTEGRUS LLC RICOH COPY CHARGES - 3/15/26 - 4/18/26
100230 52314 $979.62
CHECK TOTAL $979.62
18824 5/5/2026 INTERIOR OFFICE SOLUTIONS INC OFFICE FURNITURE - PLANNING

MANAGER OFFICE - DEP
504620 56100 $2,663.13
CHECK TOTAL $2,663.13
18825 5/5/2026 IT1 SOURCE LLC LOGITECH WEBCAMS (4) 100230 51200 $412.66 CHECK TOTAL $412.66

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18826 5/5/2026 KALIBER ROOFING INC HIP323 PLHA WANG 23515 GRAND RIM CT.
224440 55580 $20,340.00
CHECK TOTAL $20,340.00
18827 5/5/2026 KUMBA INC WEDDING & EVENT EXPO RENTAL TENT 100510 52304 $750.00 CHECK TOTAL $750.00
18828 5/5/2026 LA COUNTY ASSESSOR OFFICE SBF ABSTRACT - MAR 2026 100230 52314 $200.00 CHECK TOTAL $200.00
18829 5/5/2026 LANDS' END INC UNIFORM JACKETS FOR FULLTIME STAFF 100240 51200 $84.42 CHECK TOTAL $84.42
18830 5/5/2026 LOOMIS COURIER SERVICES - APRIL 2026 100210 54900 $873.25 5/5/2026 LOOMIS COURIER SERVICES - APRIL 2026 100510 54900 $873.25 CHECK TOTAL $1,746.50
18831 5/5/2026 LOS ANGELES COUNTY PUBLIC
WORKS

SUMP PUMP MAINTENANCE
(SYCAMORE CYN PARK) FY25-26
100630 52320 $939.03
5/5/2026 LOS ANGELES COUNTY PUBLIC
WORKS

CS - INDUSTRIAL WASTE SERVICES - THRU
MAR 2026
100610 55550 $5,108.75
CHECK TOTAL $6,047.78
18832 5/5/2026 MAGNUS INTERNATIONAL TRADE

SERVICES CORP

PRESERVE DB FEEDBACK TRANSLATION

CHINESE, KOREAN
100240 51200 $227.55
CHECK TOTAL $227.55
18833 5/5/2026 MCE CORPORATION ROAD MAINTENANCE MARCH 2026 100655 55530 $2,502.22 5/5/2026 MCE CORPORATION ROAD MAINTENANCE MARCH 2026 201655 55530 $3,430.43 5/5/2026 MCE CORPORATION ROAD MAINTENANCE MARCH 2026 100655 55528 $13,096.32 CHECK TOTAL $19,028.97
18834 5/5/2026 MICHAEL BAKER INTERNATIONAL
INC

CANYON LOOP TRAIL -HMMP PROJECT

MANAGER
301630 56104 $1,652.63
CHECK TOTAL $1,652.63
18835 5/5/2026 MOBILE RELAY ASSOCIATES INC RECURRING SERVICES FOR EMERGENCY

PREPARDNESS
100350 52300 $78.75
CHECK TOTAL $78.75
18836 5/5/2026 NATIONAL TRENCH SAFETY INC KRAIL EQUIP RENTAL GS SLOPE (041026- 041526)
100655 52300 $943.02

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 5/5/2026 NATIONAL TRENCH SAFETY INC KRAIL EQUIP RENTAL GS/SG (CRANE

PICKUP)
100655 52300 $487.50
CHECK TOTAL $1,430.52
18837 5/5/2026 NICHOLS CONSULTING

ENGINEERS, CHTD

ADA CURB RAMP IMPROVEMENT PROJ
(AREA 6)
203615 56101 $25,525.00
CHECK TOTAL $25,525.00
18838 5/5/2026 OCCUPATIONAL HEALTH

CENTERS OF CALIFORNIA
PRE-EMPLOYMENT PHYSICAL FEES 100220 52510 $1,258.00
5/5/2026 OCCUPATIONAL HEALTH

CENTERS OF CALIFORNIA
PRE-EMPLOYMENT PHYSICAL FEES 100220 52510 $311.00
CHECK TOTAL $1,569.00
18839 5/5/2026 ONE TIME PAY VENDOR ESAUL PUENTES FACILITY REFUND 100 20202 $1,250.00 CHECK TOTAL $1,250.00
18840 5/5/2026 ONE TIME PAY VENDOR KIMM NASSER-FENN FACILITY REFUND 100 20202 $1,208.00 CHECK TOTAL $1,208.00
18841 5/5/2026 ONE TIME PAY VENDOR LIEN PHONGSA FACILITY REFUND 100 20202 $200.00 CHECK TOTAL $200.00
18842 5/5/2026 ONE TIME PAY VENDOR PAUL GHOTRA FACILITY REFUND 100 20202 $1,450.00 CHECK TOTAL $1,450.00
18843 5/5/2026 ONE TIME PAY VENDOR ANDREA CAMPBELL REIMB - TYLER CONNECT CONF 2026 100210 52415 $656.44 CHECK TOTAL $656.44
18844 5/5/2026 ONE TIME PAY VENDOR LUISA ALLEN REIMB - TYLER CONNECT CONF 2026 100210 52415 $518.42 CHECK TOTAL $518.42
18845 5/5/2026 ONE TIME PAY VENDOR TRICIA NEGRON REIMB - TYLER CONNECT CONF 2026 100210 52415 $595.06 CHECK TOTAL $595.06
18846 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
CJK CONSTRUCTION C&D REFUND: 610 RIDGEVIEW CT 100 22105 $250.00 CHECK TOTAL $250.00
18847 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
HOYT ROOFS INC C&D REFUND: 3425 PASADO DR 100 22105 $250.00 CHECK TOTAL $250.00

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18848 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
HUI XIA C&D REFUND: 24411 TOP CT 100 22105 $250.00
CHECK TOTAL $250.00
18849 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
JULIO LEMUS C&D REFUND: 2729 SUNBRIGHT DR 100 22105 $250.00 CHECK TOTAL $250.00
18850 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
MIKE BOI NGUYEN C&D REFUND: 24229 DOESKIN PL 100 22105 $650.00 CHECK TOTAL $650.00
18851 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
RANDY MANG C&D REFUND: 2545 HARMONY HILL DR 100 22105 $250.00 CHECK TOTAL $250.00
18852 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
VINCENT WHITLEY C&D REFUND: 334 S DIAMOND BAR
BLVD
100 22105 $400.00
CHECK TOTAL $400.00
18853 5/5/2026 ONE TIME PAY VENDOR - CND
REFUND
YUAN ZHANG C&D REFUND: 21808 HEATHERLANE CT 100 22105 $250.00 CHECK TOTAL $250.00
18854 5/5/2026 PRINTING DYNAMICS INC CERTIFICATE PAPER - 1,000 100140 51400 $1,317.00 CHECK TOTAL $1,317.00
18855 5/5/2026 PRO1PRINT, LLC COFFEE WITH A COP AND THROUGH

MY LENS POSTCARDS
100240 52110 $503.70
CHECK TOTAL $503.70
18856 5/5/2026 REINBERGER CORPORATION CERTIFICATE FRAME HOLDERS 100130 52110 $1,963.34 CHECK TOTAL $1,963.34
18857 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 4/24/2026
100210 54900 $1,420.80
5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - CITY CLERK WK 4/24/2026
100140 54900 $312.00
5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 3/6/2026 100210 54900 $1,420.80 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 4/3/2026 100210 54900 $1,420.80 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 3/13/2026
100210 54900 $1,420.80
5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 5/1/2026 100210 54900 $1,420.80

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $7,416.00
18858 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502130 52330 $82.34 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502430 52330 $272.27 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502620 52330 $324.20 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502630 52330 $545.73 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502655 52330 $1,075.81 CHECK TOTAL $2,300.35
18859 5/5/2026 SHAW HR CONSULTING INC PROF. SVCS - HR CONSULTING 100220 54900 $3,317.50 CHECK TOTAL $3,317.50
18860 5/5/2026 SOCIAL ASSURANCE LLC ANNUAL RENEWAL - SOCIAL ASSURANCE FY-25-26
100230 52314 $3,500.00
CHECK TOTAL $3,500.00
18861 5/5/2026 SPECTRUM BUSINESS INTERNET SERVICE/HERITAGE PARK - APR 2026
100230 54030 $290.47
5/5/2026 SPECTRUM BUSINESS SUMMARY BILL - CABLE TV/INTERNET - MAY 2026
100230 54030 $1,942.60
5/5/2026 SPECTRUM BUSINESS CABLE TV SERVICE/DBC - MAY 2026 100230 54030 $136.43 CHECK TOTAL $2,369.50
18862 5/5/2026 STEPHEN LUGO RETENTION CONTRACT WITHHOLDING:
26000034
262 29004 $999.50
CHECK TOTAL $999.50
18863 5/5/2026 STUMP FENCE CO RETENTION CONTRACT WITHHOLDING:
26000033
262 29004 $1,490.00
5/5/2026 STUMP FENCE CO RETENTION CONTRACT WITHHOLDING:
26000033
262 29004 $1,680.50
CHECK TOTAL $3,170.50
18864 5/5/2026 TASC FSA FEES - APRIL 100220 52515 $205.41 CHECK TOTAL $205.41
18865 5/5/2026 TENNIS ANYONE INC CONTRACT CLASSES TENNIS SERVIC 100520 55320 $6,238.89 CHECK TOTAL $6,238.89
18866 5/5/2026 THE KNOT WORLDWIDE INC DBC ONLINE STOREFRONT MAY-JULY 2026
100510 52160 $3,744.00

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $3,744.00
18867 5/5/2026 THE SAN GABRIEL VALLEY

NEWSPAPER GR
LEGAL AD - PL2025-29 - 1400
MONTEFINO MARCH 2026
100 22107 $1,494.90
5/5/2026 THE SAN GABRIEL VALLEY

NEWSPAPER GR
LEGAL AD - PL2025-27 APRIL 2026 100 22107 $921.93
5/5/2026 THE SAN GABRIEL VALLEY

NEWSPAPER GR
LEGAL AD PL2026-5 QUAIL RUN 100 22107 $579.64
CHECK TOTAL $2,996.47
18868 5/5/2026 THE SAN GABRIEL VALLEY

NEWSPAPER GR
ORD. NO. 05 (2026) 1ST READING 100140 52160 $371.56
CHECK TOTAL $371.56
18869 5/5/2026 THE SHERWIN-WILLIAMS CO MAINTENANCE SUPPLIES @ DBC (JK 041526)
100510 52320 $26.98
5/5/2026 THE SHERWIN-WILLIAMS CO MAINTENANCE SUPPLIES @ DBC (JK 041526)
100510 52320 $51.30
CHECK TOTAL $78.28
18870 5/5/2026 THE WINDMILL MARCH/APRIL ADS -PRESERVE DB,

WEDDING & EVENT EXPO
100240 52160 $1,600.00
CHECK TOTAL $1,600.00
18871 5/5/2026 TYLER TECHNOLOGIES INC ELM PROJECT MGMT - 4/7/26 - 4/10/26 503230 56135 $10,230.55 5/5/2026 TYLER TECHNOLOGIES INC ELM PROJECT MGMT - 4/14/26 503230 56135 $800.00 CHECK TOTAL $11,030.55
18872 5/5/2026 ULINE INC FY2025-26 EMERGENCY PREP SUPPLIES 100350 51200 $1,420.05 CHECK TOTAL $1,420.05
18873 5/5/2026 ULTIMATE MAINTENANCE

SERVICES INC
JANITORIAL SERVICES (APRIL/2026) 100630 55505 $3,070.00 5/5/2026 ULTIMATE MAINTENANCE

SERVICES INC
JANITORIAL SERVICES (APRIL/2026) 100510 55505 $9,650.00 5/5/2026 ULTIMATE MAINTENANCE

SERVICES INC
JANITORIAL SERVICES (APRIL/2026) 100620 52320 $12,075.00 CHECK TOTAL $24,795.00
18874 5/5/2026 US BANK PCARD STATEMENT - APRIL 2026 999 28100 $27,857.87 CHECK TOTAL $27,857.87
18875 5/5/2026 VERIZON WIRELESS WIRELESS PHONE SERVICE - 1/17/26 - 4/16/26
100230 52200 $8,134.69

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $8,134.69
18876 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (JW 041626) 100630 51200 $25.53 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (CB042026) 100630 52320 $33.42 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (JW042126) 100510 52320 $189.87 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (JK 042226) 100630 51200 $556.82 CHECK TOTAL $805.64
18877 5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES HERITAGE PARK (041526)
100630 51200 $350.39
5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (DBC) 100510 51210 $1,067.97 5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (HERITAGE PARK) 100630 51200 $89.20 5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (DBC) 100510 51210 $100.57 CHECK TOTAL $1,608.13
18878 5/5/2026 WILLDAN GEOTECHNICAL BUILDING AND SAFETY INTERIM PERMIT

TECHNICIAN
100420 55100 $14,705.00
CHECK TOTAL $14,705.00
18879 5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $2,312.40
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $2,453.40
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $2,538.00
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100 22107 $423.00
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100 22107 $1,184.40
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100 22107 $7,009.68
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $12,635.31
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $366.60
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $56.40
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $1,889.40

City of Diamond Bar Check Register
CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $1,410.00
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $112.80
5/5/2026 WOODRUFF & SMART, A

PROFESSIONAL CORPORATION
LEGAL SERVICES - MARCH 2026 100120 54020 $112.80
CHECK TOTAL $32,504.19
18880 5/5/2026 ZUMAR INDUSTRIES INC ROAD MAINTENANCE SUPPLIES (SIGNAGE)
100655 51250 $4,397.49
CHECK TOTAL $4,397.49
GRAND TOTAL $1,026,586.40

Agenda Item #: 7.3
Meeting Date: May 19, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Third Amendment to Consultant Services Agreement with Torti Gallas + Partners.

STRATEGIC GOAL: Responsible Stewardship of Public Resources Open, Engaged and Responsive Government
Safe, Sustainable and Healthy Community
RECOMMENDATION:

A. Appropriate $3,620 from the General Plan Update Fund 103 to cover the cost to prepare a response to comments regarding the adequacy of the Final Supplemental Environmental Impact Report; and B. Approve, and authorize the City Manager to sign, the Third Amendment to the Consultant Services Agreement with Torti Gallas + Partners to cover unanticipated expenses pertaining to the adoption of the Town Center Specific Plan.

FINANCIAL IMPACT:

The proposed Third Amendment increases the not-to-exceed contract amount by $3,620, for a total contract amount of $1,166,620. An appropriation in the amount of $3,620 is requested to increase the budget (a/c 103410-54900) for this purpose. Sufficient reserve funds are currently available in the General Plan Update Fund (Fund 103) to cover this cost.

BACKGROUND:

On March 16, 2026, the City received a comment letter from counsel representing Supporters Alliance for Environmental Responsibility (SAFER) regarding the Final Supplemental Environmental Impact Report (SIR) for the Town Center Specific Plan (TCSP), scheduled for City Council second reading and certification on March 17, 2026. The letter raised concerns regarding the adequacy of the SIR, including claims related to air quality analysis, mitigation measures, and the need for recirculation under CEQA.

Given the timing of the submittal, staff, in coordination with the City Attorney’s Office and the City’s environmental consultant (Sapphos Environmental, Inc.), determined that a formal written response was necessary to ensure a complete administrative record and to assist the City Council in its consideration of the TCSP and Final SIR certification.

Agenda Item #: 7.3
Meeting Date: May 19, 2026
On March 17, 2026, the City Council adopted Ordinance No. 03(2026) approving the TCSP and Resolution No. 2026-05 certifying the Final SIR. The ordinance became effective on April 16, 2026, and the TCSP is now the regulatory framework governing the Town Center planning area.

ANALYSIS:

In response to the SAFER comment letter, the City’s environmental consultant team prepared a written response memorandum addressing the issues raised. The response was completed under expedited conditions and provided to the City Council on the dais on March 17, 2026, in advance of the second reading of the TCSP ordinance and certification of the Final SIR.

The response clarified that the Final SIR did not introduce “significant new information” requiring recirculation under CEQA Guidelines Section 15088.5 and confirmed that the Final SIR did not alter any significance determinations from the Draft SIR, but instead clarified the presentation of construction and operational impacts.

Preparation of this response required unanticipated consultant effort outside the scope of the existing Consultant Services Agreement. As documented in correspondence from Sapphos Environmental, Inc., the consultant team mobilized immediately upon receipt of the SAFER letter to prepare the response in time for the March 17, 2026 hearing, resulting in costs that exceeded the remaining contract budget.

The total additional cost attributable to this effort is $3,620. Approval of the proposed Third Amendment to the Consultant Services Agreement is necessary to compensate the consultant for this work and to reconcile the contract budget with actual services rendered.

The response memorandum also strengthened the administrative record supporting the City’s certification of the Final SIR and approval of the TCSP. Following project approval, the 30-day statute of limitations to challenge the adequacy of the Final SIR expired without legal action. While this outcome cannot be attributed to any single factor, the City’s timely and substantive response ensured that the City Council acted on a complete and well-documented record, reducing potential legal risk and strengthening the City’s position in the event of a challenge.

LEGAL REVIEW:

The City Attorney has approved the attached Third Amendment to the Consultant Services Agreement as to form.

PREPARED BY:

Greg Gubman, Director, Community Development
ATTACHMENTS:

1. Third Amendment to Consultant Services Agreement with Torti Gallas + Partners

Agenda Item #: 7.4
Meeting Date: May 19, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: Declaration to Levy Assessments for Landscape Assessment District Nos. 38, 39-2022, and 41-2021 for Fiscal Year 2026/27.

STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION:

A. Adopt Resolution No. 2026-11 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 38 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting;
B. Adopt Resolution No. 2026-12 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 39-2022 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting; and,
C. Adopt Resolution No. 2026-13 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 41-2021 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting.

FINANCIAL IMPACT:

District No. 38
The assessment generated by this District in the amount of $277,290, and $88,378 of the General Fund contribution, will be requested for the operation and maintenance costs in the final Proposed Fiscal Year 2026/27 Budget, Special Fund No. 238.

District No. 39-2022
The assessment generated by this District in the amount of $708,703, and $42,638 of the General Fund contribution (6.62% General Benefit), with a $263,134 Fund Balance Carryover, will be requested for the operation and maintenance costs in the final Proposed Fiscal Year 2026/27 Budget, Special Fund No. 239.

District No. 41-2021
The assessment generated by this District in the amount of $330,305, and $17,453 of the General Fund contribution (3.84% General Benefit), with a $181,367 Fund Balance Carryover, will be requested for the operation and maintenance costs in the final Proposed Fiscal Year 2026/27 Budget, Special Fund No. 241.

Agenda Item #: 7.4
Meeting Date: May 19, 2026
BACKGROUND:

District No. 38
On April 7, 2026, the City Council adopted Resolution No. 2026-08, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 38 and any assessment thereon for Fiscal Year 2026/27.

District No. 39-2022
On April 7, 2026, the City Council adopted Resolution No. 2026-09, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 39- 2022 and any assessment thereon for Fiscal Year 2026/27.

District No. 41-2021
On April 7, 2026, the City Council adopted Resolution No. 2026-10 ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 41-2021 and any assessment thereon for Fiscal Year 2026/27.

ANALYSIS:

District No. 38
The attached Engineer’s Report (Attachment 2) for the City’s Landscaping Assessment District No. 38 which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of improvements, a diagram for the District and the assessments.

The estimated number of assessable parcels within the District is 18,486 parcels. The amount assessed upon the lands within District Number 38 for Fiscal Year 2025/26 was $15.00 per parcel. The amount to be assessed for Fiscal Year 2026/27 is to remain at $15.00 per parcel. The assessments will be utilized to maintain the City’s medians and parkways.

The proposed assessment has been determined to be exempt from the provisions of Proposition 218 as set forth in section 5 (a): Any assessment imposed exclusively to finance the capital costs or maintenance and operating expenses for sidewalks, streets, sewers, water, flood control drainage systems or vector control.

District No. 39-2022
The attached Engineer’s Report (Attachment 4) for the City’s Landscaping Assessment District No. 39-2022, which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of operation and maintenance, a diagram for the District and the assessments.

The estimated number of assessable parcels within the District is 1,246 parcels. The draft Engineer’s Report contains a full and detailed description of the improvements, the boundaries of the assessment district and contains the proposed assessments upon assessable lots and parcels of land within the District. Said estimated cost results in a proposed Single-Family Equivalent (“SFE”) assessment rate of $583.63 for Zone A, $569.04 for Zone B, and $539.86 for Zone C for Fiscal Year 2026/27. Said proposed assessments include an authorized annual increase equal to the change in the Los Angeles-Riverside-Orange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding. The annual CPI from December 2024 to December 2025 was 3.01%.

Agenda Item #: 7.4
Meeting Date: May 19, 2026
The assessments will be utilized for the general maintenance of slopes, open space areas, and the five (5) mini parks within the District.

District No. 41-2021
The attached Engineer’s Report (Attachment 6) for the City’s Landscaping Assessment District No. 41-2021, which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of operation and maintenance, a diagram for the District and the assessments.

The estimated number of assessable parcels within the District is 554 parcels. The draft Engineer’s Report contains a full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the District for Fiscal Year 2026/27. Said proposed assessment amounts for the single-family and multi-family parcels are $608.88 and $560.17, respectively, an increase of 3% from Fiscal Year 2025/26.

LEGAL REVIEW:

The City Attorney has reviewed and approved the Resolutions as to form.

PREPARED BY:

Nicholas Delgado, Management Analyst, Public Works
ATTACHMENTS:

1. Resolution No. 2026-11 (LAD# 38)

2. LAD No. 38 Draft Engineer's Report

3. Resolution No. 2026-12 (LAD# 39-2022)

4. LAD No. 39-2022 Draft Engineer's Report

5. Resolution No. 2026-13 (LAD# 41-2021)

6. LAD No. 41-2021 Draft Engineer's Report

RESOLUTION NO. 2026-11

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPING ASSESSMENT DISTRICT NO. 38

AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING
BEFORE THE COUNCIL AT THE JUNE 16, 2026 REGULAR MEETING.

WHEREAS, the City of Diamond Bar Landscaping Assessment District No. 38 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”); and
WHEREAS, NBS has been designated as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and ordered to prepare the Engineer’s Report in accordance with the Act; and
WHEREAS, the Engineer of Work has filed the Engineer’s Report (the “Report”) with the City Clerk, copies of which have been submitted to this City Council, which Report contains the information required by the Act, including: (a) a calculation of the portion of the services to be provided by the District that constitute a special benefit to the parcels in the District; (b) a methodology for assigning assessments to individual parcels; (c) a listing of each lot or parcel of property that would be subject to the proposed assessment; (d) the estimate of cost for the improvements; and (e) the amount of the proposed assessment for each lot or parcel for the fiscal year 2026-27.

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond as follows:

Section 1. The Recitals, as set forth in this Resolution, are in all respects true and correct.

Section 2. The above-described Report submitted by the Engineer of Work relating to the District is hereby approved as filed.

Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2026-27 pursuant to the Act, within the area designated “City of Diamond Bar Landscaping Assessment District No. 38,” as shown on Exhibit “A” attached hereto and incorporated herein by reference.

Section 4. A general description of the improvements proposed for the aforementioned District is as follows:

Resolution No. 2026-11
2 The installation, maintenance, and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks, paving, irrigation, or electrical facilities. Said installation, maintenance, and servicing of the landscaping and related work shall be within the area of the District as shown on Exhibit “A,” as attached hereto and incorporated by reference. The location and type of improvement are shown in Exhibit “A.”
Section 5. Reference is hereby made to the Report relating to said District hereinabove approved. Said Report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the District, and contains the proposed assessments upon assessable lots and parcels of land within the District for fiscal year 2026-27. Said proposed assessment per lot or parcel is the amount of $15.00, the same amount historically levied.

Section 6. This Council hereby fixes 6:30 p.m. on June 16, 2026, or as soon thereafter as the matter may be heard, in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable parcels within the District for fiscal year 2026-27 and hereby gives notice of said hearing.

Section 7. The City Council hereby determines and declares that the proposed assessments constitute a continuation of assessments existing on the effective date of Article XIII D of the California Constitution (the “Article XIII D”), that the assessments are imposed exclusively to finance the installation, maintenance, and servicing of improvements within the District, and that the assessment is exempt from the requirements of Article XIII D.

Section 8. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061.

PASSED, ADOPTED AND APPROVED this 19th day of May 2026.

CITY OF DIAMOND BAR
__________________________
Steve Tye, Mayor

Resolution No. 2026-11
3 ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 19th day of May 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:

Kristina Santana, City Clerk

Resolution No. 2026-11
4 Exhibit A

Fiscal Year 2026/27 Engineer’s Report For:

Landscaping Assessment District No. 38
May 2026

TABLE OF CONTENTS

1. Engineer’s Letter.............................................................................................................1

2. Introduction ...................................................................................................................2

2.1 Background..............................................................................................................2

2.2 Process for Annual Assessment ..............................................................................2

2.3 Legislative Context ..................................................................................................3

3. Plans and Specifications..................................................................................................6

4. Estimate of Costs............................................................................................................8

4.1 District Budget.........................................................................................................8

4.2 Balance to Levy........................................................................................................8

5. Method of Apportionment............................................................................................ 10

5.1 Special Benefit.......................................................................................................10

5.2 General Versus Special Benefit .............................................................................12

5.3 Quantification of General Benefit.........................................................................13

5.4 Method of Assessment..........................................................................................16

5.5 Annual Assessment Calculation ............................................................................16

5.6 Duration of Assessment ........................................................................................16

5.7 Appeals and Interpretation ...................................................................................17

6. Assessment Diagram..................................................................................................... 18

7. Assessment Roll............................................................................................................ 19

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 1

1. ENGINEER’S LETTER
WHEREAS, the City Council of the City of Diamond Bar (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), directed NBS to prepare and file the Annual Engineer’s Report for the Landscaping Assessment District No. 38 (the “District”) for Fiscal Year 2026/27, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution (the “Article XIII D”). The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2026/27, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received.

NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation, and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received.

District
Parcel
Count (1)
Proposed
FY 2026/27
Rate
Proposed
FY 2026/27
Assessment Amount
Landscaping Assessment District
No. 38
18,486 $15.00 $277,290.00
(1) Includes active and levied parcels.

I, the undersigned, respectfully submit this Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Diamond Bar at the time of District formation. ____________________________________________
John G. Egan, P. E.

Assessment Engineer

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 2

2. INTRODUCTION

2.1 Background
The City services and maintains perimeter and median landscaping, and other improvements (the “Improvements”) to various parts of the City. In order to fund the maintenance and operation (the “Services”) of these improvements, the District was formed in 1984 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Landscape and Lighting Act of 1972, and Article XIII D.

2.2 Process for Annual Assessment
As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district, and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district.

The City Council must also annually adopt a Resolution of Intention which:
• Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district.
• Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.

If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published.

Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 3 improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218.

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll.

Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate.

2.3 Legislative Context
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.

Article XIII D imposes four basic substantive requirements on assessments1:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit.

Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.

GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” 1 California Constitution Article XIII D Section 4.
2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013)

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 4 The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) 3 quoted from the Legislative Analyst’s
Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”)
4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors.

BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (“Tiburon”)
5 , the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.”

PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.

The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.”
3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007) 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017)

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 5

IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied.”

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 6

3. PLANS AND SPECIFICATIONS
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows:

MEDIANS
The landscaped islands to be maintained by the District are located as follows:
• Diamond Bar Blvd
• Grand Ave
• Golden Springs Dr – 57 freeway overcrossing to West City Limits • Golden Prados Dr – Golden Springs Dr to Hopi St
• Tin Dr – Great Bend Dr to Diamond Bar Blvd
• Lemon Ave – Lycoming St to Golden Springs Dr
• Sunset Crossing Rd – 57 freeway off-ramp to Prospectors Rd • Prospectors Rd – at Dry Creek Rd; at Palo Cedro Dr; and at Beaverhead Dr • Pathfinder Rd at Brea Canyon Rd (east of 57 freeway)

PARKWAYS
The landscaped parkways to be maintained by the District are located as follows:
• Grand Ave – Summit Ridge to Diamond Bar Blvd, north side • Temple Ave – Diamond Bar Blvd to Golden Springs Dr, south side • Golden Springs Dr – Ballena Dr to End of cul-de-sac
• Golden Springs Dr – El Encino Dr to Platina Dr
• Golden Springs Dr – Rancheria Rd to end of cul-de-sac • Diamond Bar Blvd – Mountain Laurel Way to Maple Hill Rd • Pathfinder Rd – Evergreen Springs Dr to end of cul-de-sac • Brea Canyon Rd – at Gerndal St
• Golden Springs Dr – at Adel Ave
• Brea Canyon Rd – South of Pathfinder Rd to southerly City Limits, both sides • Sunset Crossing Rd – Big Falls Dr to Chapparal Dr

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 7

TURF AREAS
The landscaped turf areas to be maintained by the District are located as follows:
• Diamond Bar Blvd – at Gold Rush Dr
• Grand Ave (east side) – from south of Rolling Knoll Dr to driveway at the Diamond • Bar Center
Installation, maintenance, and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, lighting, fencing, entry monuments, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District.

Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage, and lights.

Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Servicing - means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526).

Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments.

The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 8

4. ESTIMATE OF COSTS

4.1 District Budget
Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below.

Description
Proposed
FY 2026/27 Costs
Salaries & Benefits (subsidized by General Fund) $57,746 Advertising 3,000
Utilities 102,800
Maintenance of Grounds/Buildings 30,000
Professional Services 7,500
Landscape Maintenance 150,000
Tree Maintenance 10,000
Total Estimated Expenditures $361,046
Contributions from Other Sources (1) (83,756)
Fiscal Year 2026/27 Net Amount to be Assessed (2) $277,290 (1) Includes City General Fund contribution.
(2) The net available funds, after incidental, administrative, financing, and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report.

4.2 Balance to Levy
The following table shows the total costs, additional revenues and contributions, and the Balance to Levy for Fiscal Year 2026/27.

Description Amount
Salaries & Benefits $57,746
Operating Expenses & Services 303,300
Total District Costs $361,046
Contribution to (from) Operational Reserves 0
Other Revenue Sources (1) (83,756)
Balance to Levy $277,290
(1) Includes City General Fund contribution.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 9 Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment.

Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy.

Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions or District sources including interest earnings.

Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 10

5. METHOD OF APPORTIONMENT
The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District.

The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report.

The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

5.1 Special Benefit
The improvements are expected to confer certain special benefits to the parcels within the District.

Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows:

The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows:

A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District.

B. Access to Improved landscaped areas and Other Public Improvements within the District.

C. Improved Views within the District.

D. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements.

The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or 7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 11 improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment:

The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 Pursuant to the Prior Engineer’s Report, the primary special benefits on landscaping are as set forth below:

1. Beautification of the streets which are used by all of the residents in Diamond Bar.

2. A sense of community pride resulting from well-maintained green spaces.

3. The enhancement of the value of property, which results from the foregoing benefits.

In addition, the following special benefits are identified in the Prior Engineer’s Report:

PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair.

Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the assessments.

This is a direct advantage and special benefit to property in the District. 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 12

IMPROVED VIEWS WITHIN THE DISTRICT
The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE

PROXIMITY TO THE IMPROVEMENTS
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

5.2 General Versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words:

Total
Benefit =
General
Benefit +
Special
Benefit
There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 13 A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside
the District
+
Benefit to Real
Property Inside the
District that is Indirect
and Derivative
+
Benefit to
the Public
at Large
Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large.

5.3 Quantification of General Benefit
Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general.

General benefits cannot be funded by these assessments – the funding must come from other sources.

In this section, the general benefit from landscaping and other types of Improvements is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

BENEFIT TO PROPERTY OUTSIDE THE DISTRICT
Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large.

However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis.

Since the properties outside the District with frontage abutting the Improvements cannot be assessed by the District, this is a form of general benefit to other property. The primary way that parcels outside the district benefit by the Improvements is from views.

Therefore, parcels that abut the landscape areas and are not separated from the Improvements by a privacy fence are counted for this general benefit. Since very few of the Improvements lie at the District boundary near occupied parcels, there are very few parcels in this category. The general benefit to property outside of the District is calculated as follows.

Assumptions based on the status of parcels in the District at the time of the initial benefit calculation:

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 14 • 18 Parcels Outside the District
• 18,422 Parcels In the District
Calculation of General Benefit to Property Outside the District: 18 / (18 + 18,422) = 0.10%.

BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District.

Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines, and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 4.43% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District.

BENEFIT TO THE PUBLIC AT LARGE
The general benefit to the public at large can be estimated by the proportionate amount of time that the District’s Improvements are used and enjoyed by individuals who are not residents, employees, customers, or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements – and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy landscaping in the same way as they may visit a park.

One way to measure the special benefit to the general public is by the vehicle trips through an area with Improvements by people who are not residents within the District.

Of the four ways benefits are conferred (proximity, access, views, extension of a property’s green space, and creation of lots), the only benefit that is conferred by way of pass-by vehicle trips is views, which accounts for 25% of the total benefits. This is further reduced to 10% due the brevity of the views and because views are less critically important and are enjoyed much less often to the average non-resident driver than to a resident.

Specific data is not available for the number of vehicle trips by non-residents of the District past the Improvements, which lie mostly on arterial roadways. A conservative estimate of vehicle trips by nonresidents is 50% of all vehicle trips. Therefore 50% of 10% = 5.00% of the benefits from the other Improvements are general benefits to the public at large.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 15

TOTAL GENERAL BENEFITS
Using a sum of these three measures of general benefit, approximately 9.53% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

Landscaping General Benefit Calculation
Outside the District 0.10%
Inside the District 4.43%
Public At Large 5.00%
Total General Benefit 9.53%
Although this analysis finds that 9.53% of the assessment may provide general benefits from the Improvements, it was determined a requirement for a minimum contribution from sources other than the assessments of 10%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits.

CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY
This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of inlieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District’s assessments.

A summary and quantification of these other contributions from the City is discussed below:

The City owns, maintains, rehabilitates, and replaces curb and gutter along the border of the District Improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements.

The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%.

The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent flooding and associated damage to the Improvements and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance and operation of the local storm drainage system is conservatively estimated to be 5%.

The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%.

The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 10%.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 16 The total General Benefit is liberally quantified at 10% which is entirely offset by the conservatively quantified total non-assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City.

5.4 Method of Assessment
The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below:

The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the Improvements, namely the maintenance and servicing of public landscaping improvements within such District. The maintenance and servicing of public landscaping improvements installed and constructed in public places in the City provides a special benefit which is received by each and every lot or parcel within the District, tending to enhance their value.

The primary benefits on landscaping are set forth below:

1. Beautification of the streets which are used by all of the residents in the City.

2. A sense of community pride resulting from well-maintained green spaces.

3. The enhancement of the value of property, which results from the foregoing benefits.

The existing land use information indicates that well over 90 percent of the parcels within the City are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessment.9

5.5 Annual Assessment Calculation
The assessment per parcel is $15. For Fiscal Year 2026/27 the amount of the Assessment for the District is not increased from prior years.

5.6 Duration of Assessment
The District was formed or annexed in previous years. It is proposed that the assessments be continued every year after their formation or annexation, so long as the public improvements need to be maintained and improved, and the City requires funding for the improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 17 Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment.

5.7 Appeals and Interpretation
Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Diamond Bar City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction.

Any dispute over the decision of the City Manager or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 18

6. ASSESSMENT DIAGRAM
The boundary of the District is coterminous with the City limits. The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar and includes all those properties included in the original formation of the District and subsequent annexations.

The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this report.

City of Diamond Bar
Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 19

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference.

Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

RESOLUTION NO. 2026-12

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPING ASSESSMENT DISTRICT NO. 39- 2022 AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JUNE 16, 2026 REGULAR MEETING.

WHEREAS, the City of Diamond Bar Landscaping Assessment District No. 39- 2022 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”); and
WHEREAS, NBS has been designated as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and ordered to prepare the Engineer’s Report in accordance with the Act; and
WHEREAS, the Engineer of Work has filed the Engineer’s Report (the “Report”) with the City Clerk, copies of which have been submitted to this City Council, which Report contains the information required by the Act, including: (a) a calculation of the portion of the services to be provided by the District that constitute a special benefit to the parcels in the District; (b) a methodology for assigning assessments to individual parcels; (c) a listing of each lot or parcel of property that would be subject to the proposed assessment; (d) the estimate of cost for the improvements; and (e) the amount of the proposed assessment for each lot or parcel for the fiscal year 2026-27.

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond as follows:

Section 1. The Recitals, as set forth in this Resolution, are in all respects true and correct.

Section 2. The above-described Report submitted by the Engineer of Work relating to the District is hereby approved as filed.

Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2026-27 pursuant to the Act, within that area designated “City of Diamond Bar Landscaping Assessment District No. 39-2022,” as shown on Exhibit “A” attached hereto and incorporated herein by reference.

Section 4. A general description of the improvements proposed for the aforementioned District is as follows:

Resolution No. 2026-12
2 Installation, maintenance and servicing of public and private areas and facilities, including but not limited to, landscaping, sprinkler systems, landscape corridors, ground cover, shrubs and trees, street frontages, drainage systems, lighting, fencing, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, for property owned and/or maintained by the City. Said installation, maintenance, and servicing of the landscaping and related work shall be within the area of the District as shown on Exhibit “A,” as attached hereto and incorporated by reference. The location and type of improvement are shown in Exhibit “A.”
Section 5. Reference is hereby made to the Report relating to the District hereinabove approved. Said Report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the District, and contains the proposed assessments upon assessable lots and parcels of land within the District for fiscal year 2026-27. Said estimated cost results in a proposed Single-Family Equivalent (“SFE”) assessment rate of $583.63. The fiscal year 2026-27 assessment rate for Zone A is $583.63, for Zone B is $569.04, and for Zone C is $539.86.

Section 6. Said proposed assessments include an authorized annual increase equal to the change in the Los Angeles-Riverside-Orange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding as authorized by prior majority approval of property owners. However, in January 2018, the Bureau of Labor Statistics (“BLS”) updated their geographic areas for computing CPI. Previously, the Los AngelesRiverside-Orange County index was made up of Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties. The BLS divided this index into two areas; one that represents Los Angeles and Orange counties (Los Angeles-Long Beach-Anaheim) and another that represents Riverside and San Bernardino counties (Riverside-San Bernardino-Ontario). This Council previously appointed the CPI to be used for the calculation of the assessments as the Los Angeles-Long Beach-Anaheim Index. The annual Los Angeles-Long Beach-Anaheim CPI from December 2024 to December 2025 was 3.01%.

Section 7. This Council hereby fixes 6:30 p.m. on June 16, 2026, or as soon thereafter as the matter may be heard, in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable parcels with the District for fiscal year 2026-27 and hereby gives notice of said hearing.

Section 8. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061.

Resolution No. 2026-12
3 PASSED, ADOPTED AND APPROVED this 19th day of May 2026.

CITY OF DIAMOND BAR

_____
Steve Tye, Mayor
ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 19th day of May 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:
_____
Kristina Santana, City Clerk

Resolution No. 2026-12
4 Exhibit A

Fiscal Year 2026/27 Engineer’s Report For:

Landscaping Assessment District No. 39-2022
May 2026

TABLE OF CONTENTS

1. Engineer’s Letter.............................................................................................................1

2. Introduction ...................................................................................................................2

2.1 Background..............................................................................................................2

2.2 Process for Annual Assessment ..............................................................................2

2.3 Legislative Context ..................................................................................................3

3. Plans and Specifications..................................................................................................6

4. Estimate of Costs............................................................................................................8

4.1 District Budget.........................................................................................................8

4.2 Balance to Levy........................................................................................................9

5. Method of Apportionment............................................................................................ 10

5.1 Special Benefit.......................................................................................................10

5.2 General Versus Special Benefit .............................................................................13

5.3 Quantification of General Benefit.........................................................................13

5.4 Zones of Benefit ....................................................................................................15

5.5 Method of Assessment..........................................................................................18

5.6 Annual Assessment Calculation ............................................................................19

5.7 Cost of Living Inflator ............................................................................................20

5.8 Duration of Assessment ........................................................................................20

5.9 Appeals and Interpretation ...................................................................................20

6. Assessment Diagram..................................................................................................... 21

7. Assessment Roll............................................................................................................ 23

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 1

1. ENGINEER’S LETTER
WHEREAS, the City Council of the City of Diamond Bar (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), directed NBS to prepare and file the Annual Engineer’s Report for the Landscaping Assessment District No. 39-2022 (the “District”) for Fiscal Year 2026/27, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution (the “Article XIII D”). The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2026/27, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received.

NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation, and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received.

District
Parcel
Count (1)
SingleFamily
Equivalents
Proposed
FY 2026/27
Rate
Proposed
FY 2026/27
Assessment Amount (2)
Landscaping Assessment
District No. 39-2022
1,246 1,214.300 $583.63 $708,703.00
(1) Includes active and levied parcels.
(2) Does not include rounding.

I, the undersigned, respectfully submit this Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed and levied in accordance with the assessment methodology adopted, approved and ordered by the City Council of the City at the time of District formation. ____________________________________________
John G. Egan, P. E.

Assessment Engineer

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 2

2. INTRODUCTION

2.1 Background
The City services and maintains mini-parks, slopes, and open space areas and other improvements (the “Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (the “Services”) of these improvements, the Landscaping Assessment District No. 39 was formed in 1985 by the County of Los Angeles prior to the incorporation of the City. Upon incorporation in 1989, the City assumed jurisdiction over the Landscaping Assessment District No. 39.

In 2022, the City Council directed that a new assessment be proposed and voted on by property owners within the District in accordance with Proposition 218 (Article XIIIC and D of the California Constitution).

Their intent was to replace the existing Landscaping Assessment District No. 39 with a new District No. 39- 2022 that would adhere to the existing boundary and include the same improvements and services. These proposed assessments were supported by 52.03% of assessment ballots received from property owners (with each ballot weighted by the amount of assessments it represented). Therefore, on March 15, 2022, by its Resolution No. 2022-13, the City Council levied the new assessments for District No. 39-2022.

This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Act, and Article XIII D.

2.2 Process for Annual Assessment
As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district.

The City Council must also annually adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district.
• Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 3 If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published.

Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218.

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll.

Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate.

2.3 Legislative Context
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.

Article XIII D imposes four basic substantive requirements on assessments1:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit.

Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.
1 California Constitution Article XIII D Section 4.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 4

GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) 3 quoted from the Legislative Analyst’s
Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”)
4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors.

BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (“Tiburon”)
5 , the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.”

PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007)

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 5 no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.

The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.”

IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits; however, it must be both defensible and consistently applied.” 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017)

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 6

3. PLANS AND SPECIFICATIONS
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows:

The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and improvements to be undertaken by the District, and the cost thereof paid from the levy of the annual assessment provide special benefit to parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Act, the work and improvements are generally described as mini-parks, slopes, and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained or serviced by the proceeds from the assessment.

Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, lighting, fencing, entry monuments, basketball courts, tennis courts, other recreational facilities, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District.

Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage and lights, playground equipment, play courts, playing fields, recreational facilities and public restrooms.

Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Servicing - means the furnishing of electric current, or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526).

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 7 Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments.

The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 8

4. ESTIMATE OF COSTS

4.1 District Budget
Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below.

Description
Proposed
FY 2026/27 Costs
Salaries & Benefits $41,579
Advertising 3,500
Utilities 137,000
Maintenance of Grounds/Buildings 35,000
Professional Services 5,000
Trail & Landscape Maintenance 330,000
Tree Maintenance 32,000
Weed/Pest Abatement 60,000
Additional Enhancement & Improvement 0
Total Estimated Expenditures $644,079
Contingencies/Reserves 370,076
Contributions from Other Sources (1) (305,452)
Fiscal Year 2026/27 Net Amount to be Assessed (2) $708,703 (1) Includes City General Fund contribution and fund balance carryover. (2) The net available funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 9

4.2 Balance to Levy
The following table shows the total costs, additional revenues and contributions, and the balance to levy for Fiscal Year 2026/27.

Description Amount
Salaries & Benefits $41,579
Operating Expenses & Services 602,500
Enhancements / Improvements / Reserves 370,076
Total District Costs $1,014,155
Contribution to (from) Operational Reserves (262,814)
Other Revenue Sources (1) (42,638)
Balance to Levy $708,703
(1) Includes City General Fund contribution.

Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment.

Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy.

Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions, fund balance carryover, or District sources including interest earnings.

Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 10

5. METHOD OF APPORTIONMENT
The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District.

The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report.

The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

5.1 Special Benefit
The improvements are expected to confer certain special benefits to the parcels within the District.

Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows:

The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows:

A. Proximity and access to Improved Landscaped Areas and Other Public Improvements within the District.

B. Improved Views within the District.

C. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements.

D. Safety and Security within the District.

E. Creation of individual lots for residential use that, in absence of the assessments, would not have been created.
7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 39-2022, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 11 The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment:

The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 In addition, the following special benefits are identified in the Prior Engineer’s Report:

PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair.

Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

IMPROVED VIEWS WITHIN THE DISTRICT
The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE

PROXIMITY TO THE IMPROVEMENTS
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 12 and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

SAFETY AND SECURITY WITHIN THE DISTRICT
The City, through proper installation, maintenance, and servicing of public and private improvements funded by the assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation improvements, proper lighting and well-kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression.

CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD

NOT HAVE BEEN CREATED
In the District, the original owner/developer(s) of the property within the District agreed unanimously to the assessments. The assessments provide the necessary funding for improvements that were required as a condition of development and subdivision approval. Therefore, such assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the assessments through the title reports, and in some cases, through Department of Real Estate “White Paper” reports that the parcels were subject to assessment. Purchase of property was also an “agreement” to pay the assessment.

Therefore, in absence of the assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the assessments.

SUMMARY OF RELATIVE WEIGHT OF BENEFIT FACTORS
A solid argument could be made that the creation of individual lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot. Without those Improvements and associated benefit, the lots would not have been created. Nevertheless, four other definitive benefits accruing to the parcels within the District are identified, and an allowance should be made within the overall relative importance of benefits. The relative benefit level of the five identified benefits used in this Report is shown below.

Benefit Category Relative Weight
Proximity & Access 10%
Views 10%
Outdoor Area Extension 10%
Safety & Security 10%
Creation of Lots 60%
Total Benefit 100%

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 13

5.2 General Versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words:

Total
Benefit =
General
Benefit +
Special
Benefit
There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside
the District
+
Benefit to Real
Property Inside the
District that is Indirect
and Derivative
+
Benefit to
the Public
at Large
Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large.

5.3 Quantification of General Benefit
Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general.

General benefits cannot be funded by these assessments – the funding must come from other sources.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 14 In this section, the general benefit from the Improvements is liberally estimated and described using the precise language from the Prior Engineer’s Report in the sections below.

BENEFIT TO PROPERTY OUTSIDE THE DISTRICT
Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large.

However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis.

Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are eight parcels outside the District that lie within a half mile travel distance of one of mini parks within the District. In addition, there are 79 parcels outside the District that are directly adjacent to areas where brush clearing activity is performed by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by 60%. The general benefit to property outside of the District is calculated as follows.

Assumptions:
• 87 Parcels Outside the District
• 1,246 Parcels In the District
• 40% Benefit Factor
Calculation of General Benefit to Property Outside the District: 87 / (87 + 1,246) x 40% = 2.61%.

BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District.

Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 1.51% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 15

BENEFIT TO THE PUBLIC AT LARGE
The general benefit to the public at large can be estimated by the proportionate amount of time that the District’s Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. There are two ways in which the public at large can enjoy the improvements, with each counting for half the general benefit: use of parks, and pass-by trips where landscaped areas can be viewed.

In the case of the mini parks that serve primarily the neighborhood, City staff estimate that approximately 10% of the users do not live, work or own property in the District. The general landscape improvements are typically along slopes and open space areas, out of view of the general public, so no general benefit is conferred for views of landscaping.

Finally, the general benefits conferred to the public at large does not include the benefit of lot creation, so this benefit is further reduced by half. Therefore, (50% of 10%) x 50% = 2.50% of the benefits from the Improvements are general benefits to the public at large.

TOTAL GENERAL BENEFITS
Using a sum of these three measures of general benefit, approximately 6.62% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

Landscaping General Benefit Calculation
Outside the District 2.61%
Inside the District 1.51%
Public At Large 2.50%
Total General Benefit 6.62%

CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY
This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of inlieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the assessments.

5.4 Zones of Benefit
The boundaries of the District were developed in conjunction and concurrent with the planning and design of the subdivisions and Improvements and thus include only the properties in the City that are proximate to the Improvements and that would materially benefit from the Improvements. Certain other properties surrounding the District were not part of the designed association between the Improvements and the assessed areas and are generally less proximate to the Improvements. In other words, the boundaries of the District have been narrowly drawn to include only properties that will specially benefit from the Improvements and would receive a declining level of service if the Assessments were not approved.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 16 The SVTA decision indicates:
“In a well-drawn district — limited to only parcels receiving special benefits from the improvement — every parcel within that district receives a shared special benefit. Under section 2, subdivision (i), these benefits can be construed as being general benefits since they are not ‘particular and distinct’ and are not ‘over and above’ the benefits received by other properties ‘located in the district.’
“We do not believe that the voters intended to invalidate an assessment district that is narrowly drawn to include only properties directly benefiting from an improvement.

Indeed, the ballot materials reflect otherwise. Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district’s property values).”
In the District, the benefit that each parcel receives from the Improvements is direct, and the boundaries are narrowly drawn to include only parcels that benefit from the assessment.

However, proximity to the improvements varies somewhat within the District. In order to most conservatively assure that assessments are proportional to the relative benefits in the District, three zones have been created:

A. In the area south of Grand Avenue the concentration of landscaped areas (brush and slopes) as well as mini parks is the greatest.

B. In the area north of Grand Avenue but south of Pantera Park there is less concentration of landscaped slopes and brush-cleared areas, but still a high concentration of mini parks.

C. In the area around and north of Pantera Park there is less concentration of landscaped slopes and brush-cleared areas and no mini parks within a half-mile.

Based on the varying characteristics of these three distinct zones, each of the five benefit categories have been assigned a benefit factor to estimate the overall relative benefit. Using Zone A as the benchmark (100%), the other two zones derive less benefit due to the proximity of relatively fewer improvements. This estimation is summarized below.

Benefit Category Weight Zone A Zone B Zone C
Factor Benefit Factor Benefit Factor Benefit
Proximity & Access 10% 100% 10% 75% 7.5% 75% 7.5%
Views 10% 100% 10% 100% 10% 75% 7.5%
Outdoor Area Extension 10% 100% 10% 100% 10% 75% 7.5%
Safety & Security 10% 100% 10% 100% 10% 100% 10%
Creation of Lots 60% 100% 60% 100% 60% 100% 60%
Relative Benefit 100% 100% 97.5% 92.5%

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 17 A general map of the location of the Zones is shown below.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 18

5.5 Method of Assessment
The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below:

The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on property in the District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single Family Equivalents (“SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single-family detached dwelling which is one Single Family Equivalent or one SFE.
9 RESIDENTIAL PROPERTIES
In the District, there is only one type of residential property present: the single-family home. Other types of residential property, such as multifamily, apartments and condominiums, are not present.

Furthermore, the property in the District is fully developed, has been stable since its original development in the late 1980s, and is zoned such that a change in that dominate land use is not expected in the future.

As a result, there is no need for a detailed analysis of population densities to determine relative benefit for other types of residential properties. Each single-family residential property is assigned one SFE.

VACANT/UNDEVELOPED PROPERTIES
While there are currently no vacant or undeveloped properties in the District, the following discussion is included in the event that properties become vacant in the future.

The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed property. An analysis of the assessed valuation data from the City found 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38-2022, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 19 that approximately 45% of the assessed value of improved properties is classified as the land value. It is reasonable to assume, therefore, that approximately 45% of the benefits are related to the underlying land and 55% are related to the improvements and the day-to-day use of the property. Using this ratio, the SFE factor for vacant/undeveloped parcels is 0.45 per parcel.

OTHER PROPERTY TYPES
Notwithstanding the foregoing discussion, there are four other types of property uses to be considered:

School Property: Pantera Elementary School lies within the District and may derive some benefit from the Improvements. However, all benefits that may be derived from the Improvements are included in the General Benefits calculation noted earlier. Therefore, the School accrues no further Special Benefit and is not assessed a fee.

Municipal Park: Pantera Park lies partly within the District. However, all benefits that may be derived from the Improvements are included in the General Benefits calculation noted earlier. Therefore, the park accrues no further special benefit and is not assessed.

Water Utility: The Walnut Valley Water District owns a parcel with two water tanks used to supply water for domestic use and fire protection. This property has no people stationed on-site and derives no benefit in any category. Therefore, it is not assessed.

Open Space: The open space parcels that lie within the District are part of the Improvements (views, safety and security, etc.) Therefore, these parcels are not assessed.

5.6 Annual Assessment Calculation
The table below shows the calculation of the estimated number of SFEs for each Zone for Fiscal Year 2026/27.

Zone Parcel Count SFE Factor SFEs
A 176 100% 176.000
B 971 97.5% 946.725
C 99 92.5% 91.575
Total 1,246 1,214.300
The following table shows the calculation of the assessment rate.

Description Fiscal Year 2026/27 Amount
Balance to Levy (1) $708,703.00
Total SFEs 1,214.300
Assessment rate per SFE $583.63
(1) Does not include rounding.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 20 The assessment rate per Zone is shown below.

Zone
Fiscal Year 2026/27
Assessment Rate
A $583.63
B 569.04
C 539.86

5.7 Cost of Living Inflator
The assessment shall be subject to an adjustment tied to the Consumer Price Index-U for the Los AngelesRiverside-Orange County area as of December of each succeeding year (the “CPI”). The maximum authorized assessment rate is equal to the maximum assessment rate in the first fiscal year the assessment was levied adjusted annually by the change in CPI.

In January 2018, the Bureau of Labor Statistics (“BLS”) updated their geographic areas for computing CPI.

Previously, the Los Angeles-Riverside-Orange County index was made up of Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties. The BLS divided this index into two areas; one that represents Los Angeles and Orange counties (Los Angeles-Long Beach-Anaheim) and another that represents Riverside and San Bernardino counties (Riverside-San Bernardino-Ontario).

The annual resolution approving this Report specifies that the CPI to be used for the calculation of the maximum assessments is the Los Angeles-Long Beach-Anaheim Index. The annual CPI from December 2024 to December 2025 was 3.01%.

5.8 Duration of Assessment
It is proposed that the assessments be continued every year after their formation, so long as the public improvements need to be maintained and improved, and the City requires funding for the Improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment.

5.9 Appeals and Interpretation
Any property owner who feels that the assessment levied on the subject property is in error, as a result of incorrect information being used to apply the foregoing method of assessment, may file a written appeal with the City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner.

If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Manager or his or her designee shall be referred to the City Council, and the decision of the City Council shall be final.

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 21

6. ASSESSMENT DIAGRAM
The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

City of Diamond Bar
Landscaping Assessment District No. 39-2022- Fiscal Year 2026/27 Engineer’s Report 22

City of Diamond Bar
Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 23

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this Report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference.

Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

RESOLUTION NO. 2026-13

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPING ASSESSMENT DISTRICT NO. 41- 2021 AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JUNE 16, 2026 REGULAR MEETING.

WHEREAS, the City of Diamond Bar Landscaping Assessment District No. 41- 2021 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”); and
WHEREAS, NBS has been designated as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and ordered to prepare the Engineer’s Report in accordance with the Act; and
WHEREAS, the Engineer of Work has filed the Engineer’s Report (the “Report”) with the City Clerk, copies of which have been submitted to this City Council, which Report contains the information required by the Act, including: (a) a calculation of the portion of the services to be provided by the District that constitute a special benefit to the parcels in the District; (b) a methodology for assigning assessments to individual parcels; (c) a listing of each lot or parcel of property that would be subject to the proposed assessment; (d) the estimate of cost for the improvements; and (e) the amount of the proposed assessment for each lot or parcel for the fiscal year 2026-27.

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows:

Section 1. The Recitals, as set forth in this Resolution, are in all respects true and correct.

Section 2. The above-described Report submitted by the Engineer of Work relating to the District is hereby approved as filed.

Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2026-27 pursuant to the Act, within that area designated “City of Diamond Bar Landscaping Assessment District No. 41-2021,” as shown on Exhibit “A” attached hereto and incorporated herein by reference.

Section 4. A general description of the improvements proposed for the aforementioned District is as follows:

Resolution No. 2026-13
2 The maintenance and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks, paving, irrigation, or electrical facilities. Said maintenance and servicing of the landscaping and related work shall be within the area of the District as shown on Exhibit "A" as attached hereto and incorporated by reference. The location and type of improvement are shown on Exhibit "A."
Section 5. Reference is hereby, made to the Report relating to the said District hereinabove approved. Said Report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the District, and contains the proposed assessments upon assessable lots and parcels of land within the District for fiscal year 2026-27. Said proposed assessment amounts for the single-family and multi-family parcels are $608.88 and $560.17, respectively, an increase of 3% from fiscal year 2025-26.

Section 6. This Council hereby fixes 6:30 p.m. on June 16, 2026, or as soon thereafter as the matter may be heard, in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable parcels within the District for fiscal year 2026-27 and hereby gives notice of said hearing.

Section 7. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061.

PASSED, ADOPTED AND APPROVED this 19th day of May 2026.

CITY OF DIAMOND BAR
__________________________
Steve Tye, Mayor
ATTEST:

I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 19th day of May 2026, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAINED: COUNCIL MEMBERS:

Kristina Santana, City Clerk

Resolution No. 2026-13
3 Exhibit A
Landscaping Assessment District 41-2021

Fiscal Year 2026/27 Engineer’s Report For:

Landscaping Assessment District No. 41-2021
May 2026

TABLE OF CONTENTS

1. Engineer’s Letter.............................................................................................................1

2. Introduction ...................................................................................................................2

2.1 Background..............................................................................................................2

2.2 Process for Annual Assessment ..............................................................................2

2.3 Legislative Context ..................................................................................................3

3. Plans and Specifications..................................................................................................6

4. Estimate of Costs............................................................................................................8

4.1 District Budget.........................................................................................................8

4.2 Balance to Levy........................................................................................................8

5. Method of Apportionment............................................................................................ 10

5.1 Special Benefit.......................................................................................................10

5.2 General Versus Special Benefit .............................................................................13

5.3 Quantification of General Benefit.........................................................................14

5.4 Method of Assessment..........................................................................................15

5.5 Annual Assessment Calculation ............................................................................18

5.6 Cost of Living Inflator ............................................................................................18

5.7 Duration of Assessment ........................................................................................18

5.8 Appeals and Interpretation ...................................................................................18

6. Assessment Diagram..................................................................................................... 20

7. Assessment Roll............................................................................................................ 22

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 1

1. ENGINEER’S LETTER
WHEREAS, the City Council of the City of Diamond Bar (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), directed NBS to prepare and file the Annual Engineer’s Report for the Landscaping Assessment District No. 41-2021 (the “District”) for Fiscal Year 2026/27, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution (the “Article XIII D”). The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2026/27, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received.

NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation, and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received.

District
Parcel
Count (1)
SingleFamily
Equivalents
Proposed
FY 2026/27
Rate
Proposed
FY 2026/27
Assessment Amount (2)
Landscaping Assessment
District No. 41-2021
554 542.48 $608.88 $330,305.00
(1) Includes active and levied parcels.
(2) Does not include rounding.

I, the undersigned, respectfully submit this Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed and levied in accordance with the assessment methodology adopted, approved and ordered by the City Council of the City of Diamond Barat the time of District formation. ____________________________________________
John G. Egan, P. E.

Assessment Engineer

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 2

2. INTRODUCTION

2.1 Background
The City of Diamond Bar (the “City”) services and maintains turf areas, slopes and open space areas, and other improvements (the “Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (the “Services”) of these projects and Improvements, Landscaping Assessment District No. 41 was formed in 1985 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. Since the passage of Proposition 218, the assessments for this existing district cannot be increased beyond the previously approved amount of $280.00 per parcel. This assessment amount does not generate sufficient revenue to fund the District’s Improvements and Services, and the annual shortfalls have been funded by the City’s General Fund.

In 2021, the City Council directed that a new assessment be proposed and voted on by property owners within the District in accordance with Proposition 218 (Article XIIIC and D of the California Constitution).

Their intent was to replace the existing District No. 41 with a new District No. 41-2021 that would adhere to the existing boundary and include the same improvements and services. These proposed assessments were supported by 87.55% of assessment ballots received from property owners (with each ballot weighted by the amount of assessments it represented). Therefore, on July 6, 2021, by its Resolution No. 2021-33, the City Council levied the new assessments for District No. 41-2021.

This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Act, and Article XIII D.

2.2 Process for Annual Assessment
As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district.

The City Council must also annually adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 3 • Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.

If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published.

Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218.

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll.

Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate.

2.3 Legislative Context
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.

Article XIII D imposes four basic substantive requirements on assessments1:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit. 1 California Constitution Article XIII D Section 4.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 4 Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.

GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) 3 quoted from the Legislative Analyst’s
Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”)
4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors.

BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (“Tiburon”)
5 , the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.” 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007)

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 5

PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.

The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.”

IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits; however, it must be both defensible and consistently applied.” 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017)

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 6

3. PLANS AND SPECIFICATIONS
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the Improvements are generally described as follows:

The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and Improvements to be undertaken by the District, and the cost thereof paid from the levy of the annual assessment provide special benefit to parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Act, the work and Improvements are generally described as mini-parks, slopes, and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained, or serviced by the proceeds from the assessment.

Installation, maintenance, and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, lighting, fencing, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District.

Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage and lights, playground equipment, play courts, playing fields, recreational facilities, and public restrooms.

Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Servicing - means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements.

Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526).

Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 7 restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments.

The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 8

4. ESTIMATE OF COSTS

4.1 District Budget
Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below.

Description
Proposed
FY 2026/27 Costs
Salaries & Benefits $41,973
Advertising 3,000
Utilities 86,000
Maintenance of Grounds/Buildings 25,000
Professional Services 5,000
Landscape Maintenance 225,000
Tree Maintenance 23,000
Weed/Pest Abatement 45,000
Capital Improvements 0
Total Estimated Expenditures $453,973
Contingencies/Reserves 75,152
Contributions from Other Sources (1) (198,820)
Fiscal Year 2026/27 Net Amount to be Assessed (2) $330,305 (1) Includes City General Fund contribution and fund balance carryover. (2) The net available funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section.

A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report.

4.2 Balance to Levy
The following table shows the total costs, additional revenues and contributions, and the balance to levy for Fiscal Year 2026/27.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 9 Description Amount
Salaries & Benefits $41,973
Operating Expenses & Services 412,000
Capital Improvements / Reserves 75,152
Total District Costs $529,125
Contribution to (from) Operational Reserves (181,367)
Other Revenue Sources (1) (17,453)
Balance to Levy $330,305
(1) Includes City General Fund contribution.

Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment.

Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy.

Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions, fund balance carryover, or District sources including interest earnings.

Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 10

5. METHOD OF APPORTIONMENT
The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District.

The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report.

The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements.

The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.

5.1 Special Benefit
The improvements are expected to confer certain special benefits to the parcels within the District.

Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows:

The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows:

A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District.

B. Improved Views within the District.

C. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements.

D. Safety and Security within the District.

E. Creation of individual lots for residential and commercial use that, in absence of the assessments, would not have been created.
7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 11 The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment:

The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values).

Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 In addition, the following special benefits are identified in the Prior Engineer’s Report:

PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share.

In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair.

Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District.

IMPROVED VIEWS WITHIN THE DISTRICT
The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District.

EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE

PROXIMITY TO THE IMPROVEMENTS
In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 12 and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements.

SAFETY AND SECURITY WITHIN THE DISTRICT
The City, through proper installation, maintenance, and servicing of public and private improvements funded by the assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation improvements, proper lighting and well-kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression.

CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD

NOT HAVE BEEN CREATED
In the District, the original owner/developer(s) of the property within the District agreed unanimously to the assessments. The assessments provide the necessary funding for improvements that were required as a condition of development and subdivision approval. Therefore, such assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the assessments through the title reports, and in some cases, through Department of Real Estate “White Paper” reports that the parcels were subject to assessment. Purchase of property was also an “agreement” to pay the assessment.

Therefore, in absence of the assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the assessments.

SUMMARY OF RELATIVE WEIGHT OF BENEFIT FACTORS
A solid argument could be made that the creation of individual lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot. Without those Improvements and associated benefit, the lots would not have been created. Nevertheless, four other definitive benefits accruing to the parcels within the District are identified, and an allowance should be made within the overall relative importance of benefits. The relative benefit level of the five identified benefits used in this Report is shown below.

Benefit Category Relative Weight
Proximity & Access 10%
Views 10%
Outdoor Area Extension 10%
Safety & Security 10%
Creation of Lots 60%
Total Benefit 100%

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 13

5.2 General Versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words:

Total
Benefit =
General
Benefit +
Special
Benefit
There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment.

The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline.

A formula to estimate the general benefit is listed below:

General
Benefit =
Benefit to Real
Property Outside
the District
+
Benefit to Real
Property Inside the
District that is Indirect
and Derivative
+
Benefit to
the Public
at Large
Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 14

5.3 Quantification of General Benefit
Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general.

General benefits cannot be funded by these assessments – the funding must come from other sources.

In this section, the general benefit from the Improvements is liberally estimated and described using the precise language from the Prior Engineer’s Report in the sections below.

BENEFIT TO PROPERTY OUTSIDE THE DISTRICT
Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis.

Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are 23 parcels outside the District that are directly adjacent to areas where slopes are maintained by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by 60%. The general benefit to property outside of the District is calculated as follows.

Assumptions:
• 23 Parcels Outside the District
• 554 Parcels In the District
• 40% Benefit Factor
Calculation of General Benefit to Property Outside the District: 23 / (23 + 554) x 40% = 1.59%.

BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District.

Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. The District boundaries are narrowly drawn to include only the residential areas within the neighborhood, and there are no regional facilities within the District. Therefore, the indirect and derivative general benefits to property within the District are zero.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 15

BENEFIT TO THE PUBLIC AT LARGE
The general benefit to the public at large can be estimated by the proportionate amount of time that the District’s Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements, and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy slope improvements in the same way as they may visit a park.

However, certain slopes maintained by the District may provide some enhancement to views enjoyed by the public as they drive past. Approximately 25% of the slopes and linear green areas maintained by the District lie along arterial roadways that carry a high percentage of traffic not associated with people who are not residents or property owners within the District. While there are not statistics available as to what percentage of passerby vehicle trips are by non-residents or non-property owners, a liberal factor of 90% is assumed.

Finally, of all the types of benefits conferred by the Improvements, passersby only benefit from views, which are estimated at 10% of the total benefits. Therefore, (90% of 25%) x 10% = 2.25% of the benefits from the Improvements are general benefits to the public at large.

TOTAL GENERAL BENEFITS
Using a sum of these three measures of general benefit, approximately 3.84% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment.

Landscaping General Benefit Calculation
Outside the District 1.59%
Inside the District 0.00%
Public At Large 2.25%
Total General Benefit 3.84%

CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY
This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of inlieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the assessments.

5.4 Method of Assessment
The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below:

The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 16 property in the District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels.

The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single Family Equivalents (“SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single-family detached dwelling which is one Single Family Equivalent or one SFE.
9 RESIDENTIAL PROPERTIES
Certain residential properties in the District that contain a single residential dwelling unit are assigned 1.0 SFE. Detached or attached houses and zero-lot line houses are included in this category of single-family residential property. If there is more than one single family detached dwelling on a parcel, it will be charged one SFE per single family detached dwelling.

Another residential property type in the District is the condominium. These properties benefit from the Improvements in proportion to the average number of people who reside in multi-family residential units versus the average number of people who reside in a single-family home (“Population Density Factor”, or “PDF”). Using the total population of each property type in the City from recent Census data and dividing it by the total number of such households reveals that approximately 3.42 persons occupy each singlefamily residence, whereas an average of 2.48 persons occupy each condominium. The ratio of 2.48 people (condominium) to 3.42 people (single-family) results in a PDF of 0.73 for condominiums.

The PDF of 0.73 for condominiums is applied to certain benefit categories, whereas other benefit categories are applicable to condominiums in full measure. The calculation of the overall SFE factors are summarized below.
9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”).

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 17 Benefit Category Weight SFR Condo
PDF SFE Factor PDF SFE Factor
Proximity & Access 10% 100% 10% 73% 7.3%
Views 10% 100% 10% 73% 7.3%
Outdoor Area Extension 10% 100% 10% 73% 7.3%
Safety & Security 10% 100% 10% 100% 10%
Creation of Lots 60% 100% 60% 100% 60%
Total Benefit 100% 100% 92%
There are no other multi-family property types (e.g., duplex, triples, fourplex, apartments) in the District, and none are foreseen in the near future. Therefore, no other multi-family assessment rate is calculated.

VACANT/UNDEVELOPED PROPERTIES
While there are currently no vacant or undeveloped properties in the District, the following discussion is included in the event that properties become vacant in the future.

The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed property. An analysis of the assessed valuation data from the City found that approximately 45% of the assessed value of improved properties is classified as the land value. It is reasonable to assume, therefore, that approximately 45% of the benefits are related to the underlying land and 55% are related to the improvements and the day-to-day use of the property. Using this ratio, the SFE factor for vacant/undeveloped parcels is 0.45 per parcel.

OTHER PROPERTY TYPES
Notwithstanding the foregoing discussion, there are four other types of property uses to be considered:

Water Utility: The Walnut Valley Water District owns a parcel with two water tanks used to supply water for domestic use and fire protection. This property has no people stationed on-site and derives no benefit in any category. Therefore, it is not assessed.

Open Space: The open space parcels that lie within the District are part of the Improvements (views, safety and security, etc.) Therefore, these parcels are not assessed.

The property in the District is fully developed, has been stable since its original development in the late 1980s, and is zoned such that a change in the predominately residential land use is not expected in the future. As a result, there is no analysis of type, size, and population densities for other uses such as commercial, industrial, and institutional properties.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 18

5.5 Annual Assessment Calculation
The table below shows the calculation of the estimated number of SFEs for Fiscal Year 2026/27.

Description Parcel Count SFE Factor SFEs
Single Family Parcels 410 100% 410.00
Condominium Parcels 144 92% 132.48
Total 554 542.48
The following table shows the calculation of the assessment rate.

Description
Fiscal Year 2026/27
Amount
Balance to Levy (1) $330,305.00
Total SFEs 542.48
Assessment rate per SFE $608.88
(1) Does not include rounding.

The assessment rate per land use is shown below.

Description
Fiscal Year 2026/27
Assessment Rate
Single Family Parcels $608.88
Condominium Parcels $560.17

5.6 Cost of Living Inflator
The assessment shall be subject to an adjustment up to a cap of 3% annually, which adjustment shall be based upon actual costs, including any reasonable reserves, supported by a report prepared in accordance with Article XIIID of the California Constitution. If the report does not support an increase or supports a reduction in the assessment, then the assessment shall not be increased or shall be lowered as applicable.

5.7 Duration of Assessment
It is proposed that the assessments be continued every year after their formation, so long as the public improvements need to be maintained and improved, and the City requires funding for the improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment.

5.8 Appeals and Interpretation
Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 19 with the City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner.

If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Manager or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final.

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 20

6. ASSESSMENT DIAGRAM
The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

City of Diamond Bar
Landscaping Assessment District No. 41-2021- Fiscal Year 2026/27 Engineer’s Report 21

City of Diamond Bar
Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 22

7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference.

Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

Agenda Item #: 8.1
Meeting Date: May 19, 2026

CITY COUNCIL AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
SUBJECT: City Vacancies, Recruitment and Retention Efforts.

STRATEGIC GOAL: Open, Engaged and Responsive Government RECOMMENDATION:

Conduct a Public Hearing on City Vacancies, and Recruitment and Retention Efforts.

FINANCIAL IMPACT:

There is no direct fiscal impact associated with conducting the public hearing required under Government Code section 3205.3. However, addressing recruitment and retention issues may involve future budget and bargaining considerations, which will be presented to the City Council as necessary.

BACKGROUND:

Assembly Bill 2561 was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year. The bill was enacted into law and is codified at Government Code section 3502.3 effective January 1, 2025.

In compliance with the legal obligations, the City is required to do the following:

1. Public Hearing: At least once each fiscal year, at a public hearing before the City Council, the City shall present information regarding the status of vacancies and recruitment and retention efforts (Gov. Code § 3502.3(a)(1)) and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process (Gov. Code § 3502.3(a)(3)). This presentation must occur prior to the City Council’s adoption of the final annual budget for the City. (Gov. Code § 3502.3(a)(2).

2. Employee Organization Participation: Allow the recognized employee organization at the City to make a presentation during the public hearing concerning vacancies and recruitment and retention efforts. (Gov.

Code § 3502.3(b).) The City’s sole employee organization representing part-time non-benefitted Parks and Recreation employees was notified on April 16, 2026 of the public hearing and their opportunity to participate

Agenda Item #: 8.1
Meeting Date: May 19, 2026
during the presentation.

ANALYSIS:

The City’s current 2025/26 fiscal year budget identifies a total of 67 full-time benefited positions across seven (7) departments. The seven (7) City departments provide external and internal service in the areas of Administration (City Manager’s Office, City Clerk’s Office and Community Relations), Community Development, Finance, Human Resources/Risk Management, Information Systems, Parks and Recreation, and Public Works.

Between July 2025 – April 2026, the City had a total of six (6) vacancies between July 2025 and April 2026 that were all created through voluntary employee resignations for external promotional job opportunities. The average vacancy rate during that same time period was 3.3%. Through April 2026, the City filled two (2) of the six (6) positions. The remaining vacancies are currently in the process of being filled.

The City also employs a number of part-time non-benefitted staff members that work on an intermittent or seasonal basis. These part-time positions are budgeted in a salary pool, filled based on operational and programmatic needs, and do not work more than 999 hours in a fiscal year. The City employs approximately 50 part-time non-benefitted employees, depending on the time of year, in the following job classifications:

Administrative Intern, Recreation Leader, Senior Recreation Leader, Recreation Specialist and Facility Attendant. A total of 16 part-time non-benefitted employees were hired between July 2025 – April 2026.

Seasonal hiring efforts are underway to bring additional part-time non-benefitted Parks and Recreation department employees to staff the scheduled summer programs and events.

Since 2021, the City Council’s strategic plan has included an Employer of Choice initiative to support the recruitment and retention of high-performing employees. A number of investments have been made by the City Council to support this effort for both part-time and full-time employees. Despite some of these efforts, obstacles to the hiring process for and retention of full-time positions still exist. They include an increased number of retirement-eligible staff and competitive external job opportunities. In the future, the City can consider making changes to its existing Personnel Rules and Regulations, Rule IV Classification, Section 8.

Flexible Staffing Program to broaden the number of eligible job classifications for the program and to add job classifications to round out job families to better prepare for succession planning purposes. Taking these actions would allow City departments to fill vacancies in a more efficient and expeditious manner, thereby optimizing the delivery of services and programs to the public. Finally, these actions will allow the City to more flexibly move employees within a job series in an efficient and cost-effective manner that is likely to result in an increase of job knowledge transfer and retention of high-performing staff.

PREPARED BY:

Amy Haug, Human Resources & Risk Management Director
ATTACHMENTS:

None